Data Centers in Anchorage
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Anchorage – Strategic Subsea & Arctic Gateway
Executive Summary
Anchorage is a specialized data center market for organizations requiring a strategic foothold in the North Pacific. Its access to key subsea fiber optic cables offers a unique, low-latency path for traffic between Asia and North America, improving network diversity and uptime for critical applications. This market is ideal for companies focused on logistics, government services, and telecommunications serving Alaska and the Arctic region.
Anchorage: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid grade for a remote market, supported by strategic subsea cable landings. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via network extension to Seattle hubs. Private connectivity is available. |
| Power Cost | $0.16 - $0.20/kWh | Predominantly fossil fuel-based, with costs higher than the national average. |
| Disaster Risk | Moderate (45.05) – as of September 2025 | Primarily seismic and winter weather risks require engineered infrastructure. |
| Tax Incentives | Yes | No statewide sales tax on equipment or software purchases provides a significant advantage. |
| Sales Tax | 0.00% – as of June 2025 | The lack of state sales tax offers direct operational and capital savings. |
Network & Connectivity Ecosystem
Anchorage provides a unique connectivity profile, defined more by its strategic geographic location than by dense local interconnection.
Carrier Density & Carrier Neutrality: As of September 2025, network services are available from a focused group of regional and national carriers. While not a densely populated carrier hub like major mainland markets, the available networks provide resilient connectivity, particularly for traffic traversing subsea cables connecting to Asia.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Anchorage, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions to the nearest major hubs in Seattle.
Internet Exchange Points (IXPs): Public peering is limited within Anchorage. Most traffic is exchanged via private peering arrangements within local facilities or is routed through major West Coast exchanges like the Seattle Internet Exchange (SIX).
Bare Metal: Bare metal server options are available from local and specialized providers. These services cater to workloads that require dedicated physical hardware to meet performance or compliance requirements in this specific geographic region.
Power Analysis
Average Cost Of Power: Industrial power costs in Anchorage are estimated between $0.16 and $0.20 per kWh, as of September 2025. This cost structure, which is above the U.S. average, makes power efficiency a key consideration for total cost of ownership. The grid mix is primarily composed of natural gas and petroleum, with a smaller contribution from renewables.
Power Grid Reliability: The Anchorage power grid is isolated from the contiguous U.S. grid. Data centers in the market are purpose-built for this reality, featuring robust on-site power generation, extensive UPS systems, and high levels of fuel storage to ensure continuous uptime during local weather or grid events.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Anchorage serve the city's core industries, including oil and gas, healthcare, logistics, and government operations. Locating infrastructure here provides low-latency performance for local business operations and the state's populace.
Regional Market Reach: Anchorage is the primary digital hub for the entire state of Alaska. More strategically, it sits on great circle routes for aviation and subsea fiber, making it an important transit point for data and goods moving between North America and Asia.
Tax Advantage For Data Centers: Alaska has no statewide sales tax. This provides a direct and substantial financial benefit, reducing capital expenditures on servers, storage, and networking hardware. This advantage makes large-scale deployments and technology refreshes more cost-effective.
Natural Disaster Risk
Anchorage has a Moderate disaster risk profile, with a FEMA National Risk Index score of 45.05 out of 100, as of September 2025. The primary environmental threats are earthquakes, severe winter weather, and cold waves. Other notable risks include avalanches, wildfire, and riverine flooding. Data center selection should prioritize seismically-rated structures and operational plans designed for extreme cold and potential seismic activity.
